Binance Will Withdraw From Canada's Market Because Of The New Regulatory Rules

Binance announced via Twitter on May 12 that it would withdraw from the Canadian market. (photo: Twitter @binance)

JAKARTA - The Binance cryptocurrency exchange announced via Twitter on May 12 that it would withdraw from the Canadian market. They call their withdrawal "proactive" as new guidelines issued by Canadian regulators continue to harm the country's crypto industry.

Binance joined some of its smaller competitors in the exodus from Canada sparked by the introduction of rules by Canadian Securities Administrators (CSA) on February 22 which required them to apply for new preregistration and comply with additional restrictions.

Although Binance has reportedly submitted a new preregistration, they explained in their tweet:

"Unfortunately, new guidelines regarding stablecoins and investor restrictions given to crypto exchanges make the Canadian market no longer suitable for Binance today," Binance said, quoted by Cointelegraph.

CSA's new rules prohibit companies from "permitting Canadian clients to commit crypto contracts to buy and sell crypto assets that are security and/or derivative," and define stablecoins as security.

OKX withdrew from the Canadian market in March. Then followed by decentralized exchange DYdX and fintech blockchain Paxos in April.

Binance sent emails to their Canadian users seen by Cointelegraph, instructing them to close their open positions on September 30, 2023.

"Starting October 1, 2023, Canadian customers will be in liquidation mode only," the warning was delivered. The exchange also added: "Although we disagree with this new guide, we look forward to continuing to communicate with Canadian regulators to create a mature and comprehensive regulatory framework."

Binance operates in all provinces and territories of Canada except for Ontario, where they withdrew in March 2022 following a long disagreement with the provincial regulator.

However, it is not over for Canadian cryptoentusiastists. Kraken submitted a new preregistration in March and stated its commitment to continuing operations in Canada. CSA lists 11 platforms "Allowed to Do Business with Canadians."